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Lithuania tax guide 2026
Lithuania rebuilt its income tax for 2026: a three-tier 20/25/32% scale now covers salaries and most income, while dividends — and other non-employment income up to 12 average wages a year — keep a flat 15% outside the combined scale.
- Rate range
- 20% / 25% / 32% (2026); dividends and small passive income at 15%
- Key allowance
- Up to EUR 747 a month tax-free for lower earners, phasing out by EUR 2,562 of monthly pay
- Tax year
- Calendar year
- Filing deadline
- 1 May of the following year
Taxes covered
- Income tax32%
New 2026 scale: 20% to EUR 83,237, 25% to EUR 138,729, 32% above — with 19.5% employee social contributions alongside.
- Dividend tax15%
Dividends are always taxed at a flat 15% by withholding — they never enter the progressive scale, whatever the amount.
- Capital gains tax15% / 32%
Gains pay 15% up to the 12-average-wage line (EUR 27,745.80 of combined non-employment income), then the 20/25/32% scale — 5-year-held shares stay at 15% throughout, and property exemptions shortened to 5 years in 2026.
- Crypto tax15% / 32%
Crypto gains are other-property income: 15% up to 12 average wages of combined non-employment income (EUR 27,745.80), the excess at 20/25/32%; a EUR 2,500 yearly other-property exemption applies, and crypto is barred from the tax-deferred investment account.
- Social security19.5%
Employees pay 19.5% — 12.52% social insurance capped at 60 average wages plus 6.98% health with no cap — while employers add only 1.45–2.71%.
- Inheritance tax0% / 5% / 10%
Spouses, children, parents, grandchildren and siblings inherit tax-free; other heirs pay 5% (10% above EUR 150,000) on 70% of market value.
- Withholding tax15% / scale
Dividends 15%; interest, royalties and rents at the residents' rates; share gains of non-residents untaxed entirely.
Special regimes
- 5-year share rule
Shares held over 5 years sell at a flat 15% — never touching the 32% band.
- Investment account
Since 2025, listed investments grow tax-deferred; only withdrawals above contributions are taxed, at a flat 15%.
- Family inheritance exemption
Spouses, children, parents, grandchildren and siblings inherit free of the 5–10% inheritance tax.
- Share options
Employee shares from options held 3+ years from grant arrive tax-free, and their sale is taxed at a flat 15%.
Recent changes
- 2026-01Three-tier scale replaces 20/32%: a new 25% band covers EUR 83,237 – 138,729; passive income above 12 average wages joins the progressive pot.
- 2026-01Property gains exemption shortens to 5 years' ownership; a primary-residence property tax starts (municipal, above at least EUR 450,000 of value); interest and royalties lose their old flat treatment above 12 average wages.
- 2025-01The investment account launches — tax deferred until withdrawals exceed contributions (crypto and direct start-up stakes excluded).